(a) It is the purpose of this Division to create a public non- profit corporation to assist in the implementation of an integrated program for the economic development of Guam. It is intended for this Corporation to be a catalyst in the economic development which this Division seeks, aiding private enterprise without unfairly competing with it. It is a further purpose of this Division to enable the Corporation to expand the supply of money available in Guam to finance the construction of residential dwellings, including single family dwellings, multiple family dwellings, condominiums and cooperative apartments. It is hereby declared that there exists in Guam a substantial and serious shortage of housing in all categories, and that this shortage is inimical to the health and welfare of the residents of Guam and to the economic development of Guam. The inadequate supply of such housing results in the continuing existence and proliferation of substandard and decadent housing, with all its attendant consequences of disease, crime, injuries, retardation of education, and high costs of services such as police and fire protection. It will thus serve the public welfare to stimulate an increase in the supply of decent, safe and sanitary housing, not only insofar as it benefits those who live in such housing but in that such housing will materially assist in the prevention of crime, the improvement of education, the reduction of hazards from fire or structurally unsafe buildings, the improvement of the public health and a lowering of the cost of services. The expansion of the supply of housing in Guam is seriously hindered by a substantial, serious and continuing shortage of long-term mortgage money, resulting in part from the inability of United States based insurance companies to provide mortgage money in Guam because of United States income tax reasons. It is, therefore, imperative that mortgage financing be made available and the supply of available money to finance housing construction be increased. Without the assistance
contemplated in this Division, the financing of or construction of decent, safe and sanitary housing in sufficient amounts to house the residents of Guam cannot be accomplished. A public exigency exists which makes the assistance contemplated by this Division a public purpose, and the necessity in the public interest for the provisions hereinafter enacted is hereby declared as a matter of legislative determination. The Legislature has also found and determined that there exists an acute shortage of adequate, modern and efficient hospital facilities in Guam and that unless measures are adopted to alleviate such conditions, the need for such facilities will become increasingly more urgent and serious. It is hereby declared that the safety, health and welfare of the people of Guam requires the provision of adequate, modern and efficient hospital facilities in the various parts of Guam, and that it is the policy of Guam and a purpose of this Division to provide the means necessary for the acquisition, construction and provision of hospital facilities to serve the general public and to make reasonably accessible to all the people of Guam modern and efficient hospital facilities. The Legislature has further found and declared that the financing, acquisition, construction, reconstruction, rehabilitation or improvement of hospital facilities and the provision of such facilities as may be incidental or appurtenant thereto are public uses and public purposes for which public money may be expended and that the enactment of this Division is necessary and proper for effectuating the purposes hereof as hereinafter provided. The Legislature hereby further finds and determines that there exists in Guam conditions of substantial and persistent unemployment, thus adversely affecting the economy of our island and the prosperity, safety, health and general welfare of its inhabitants and their standard of living; and that the availability of financial assistance and suitable facilities are important inducements to new and varied employment promoting enterprises to locate in Guam, and to existing enterprises to remain and expand in our island. The provision of buildings, structures and other facilities to increase opportunity for employment in manufacturing, industrial, commercial, recreational, retail and service enterprises in Guam is in the public interest and is a public purpose to induce and accelerate opportunity for employment in such enterprises. In order to aid in supplying these needs and to assist in the immediate reduction ofunemployment and to provide sufficient employment for the citizens of Guam in the future, it is necessary and in the public interest to aid and encourage the immediate commencement of new construction projects of all types. The availability of financial assistance by Guam will reduce present unemployment and improve future employment opportunities by encouraging and inducing the undertaking of such construction projects, the location, retaining or expanding of employment promoting enterprises with Guam. By virtue of Guam’s architectural and cultural heritage, its positions as principal centers of communication and transportation, this government is capable of ameliorating the conditions of deterioration which impede sound community growth and development; and that building a proper balance of industrial and commercial facilities and increasing the attractiveness of Guam to persons of all income levels is essential to Guam as a desirable place to live, work, shop and enjoy life’s amenities; that the accomplishment of these objectives is beyond remedy solely by regulatory process and cannot be dealt with effectively by the ordinary operations of private enterprise without the powers provided herein, and that the exercise of the powers herein provided is critical to continuing the process of revitalizing Guam and will serve an urgent public use and purpose. In order to aid in remedying the aforesaid conditions and to further and implement the purposes of this Division, the authority and powers conferred under this Division and expenditure of money pursuant thereto constitute a serving of a valid public purpose and that enactment of the provisions of Article 5 of this Division is in the public interest and for the public benefit and good and is so declared to be as a matter of expressed legislative determination.

(b) The Corporation is authorized to control and implement that part of the basic plan for the economic development of Guam, assigned to it by the Governor of Guam. The Corporation shall also be an active participant in the development of said basic plan.

(c) The Corporation is authorized to conduct or cause to be conducted research into natural resources, experiments, marketing methods and export possibilities, and to make known and publicize the results of such activities; provided, however, that when the Corporation proposes to enter into any research or similar investigative activity, it shall first ascertain that suchactivity is not being duplicated elsewhere in the government of
Guam.

(d) The Corporation is authorized to promote investments of entrepreneurial capital in Guam, if need be form and operate its own industries, invest in and provide technical assistance in support of its objectives, develop and maintain facilities for lease or sale and provide for the expansion of agricultural, industrial, hospital, housing and tourist facilities through financial assistance and other means.

(e) Except as specifically prohibited herein, the Corporation is authorized to make loans or guarantees of loans to any persons, firm, partnership or corporation licensed to do business in Guam in furtherance of the purposes and activities stated in this Division. All loans so made shall be of such sound value or so secured as to reasonably assure repayment, or shall be of such vital need to the economy of Guam as to warrant additional risks or subsidies. Each loan made by the Corporation may be sold to a commercial lending institution for a sum not less than the principal balance of said loan and the proceeds thereof returned to the capital fund of the Corporation, subject to the terms of any resolution of the Board of Directors of the Corporation authorizing the issuance of revenue bonds. Each loan made by the Corporation shall include, wherever possible, an option on the part of the Corporation to convert up to fifty percent (50%) of the total loan so made into equity of one form or another.

(f) The Corporation is authorized to issue, sell, or dispose of revenue bonds and other obligations from time to time under such terms and conditions as the Guam Legislature, by appropriate legislation may prescribe. The proceeds of such bonds and obligations shall be used solely to finance specifically authorized corporate programs. All fees that the Corporation may be eligible for resulting from its role as the Central Financial Manager for the government of Guam shall be paid from the source of repayment for the refinancing of bonds and other obligations, and shall only be included in the amount to be borrowed for new bond issues if the fees are to be included as part of the first and second year’s debt service as a ‘principal only’ or ‘reduced interest’ payment.

(g) The Corporation is authorized to invest its funds in anyenterprise, undertaking or other activity which, in its judgment, will further development of desirable agriculture, industry, hospital facilities, housing and commerce, and of tourism in Guam.

(h) The Corporation is authorized to obtain land belonging to the government of Guam as required to carry out its purposes and objectives, under such terms and tenure as the Legislature, by appropriate legislation, may prescribe.

(i) The Corporation is authorized to purchase from any person, firm, corporation or governmental entity, and to refinance, mortgages on residential real property, including single family dwellings, multiple family dwellings, condominiums and cooperative apartments, which are insured or guaranteed by an agency or instrumentality of the United States of America, by Guam, or by any other person, firm, corporation or governmental entity approved by the Board of Directors of the Corporation. The Corporation is also authorized to make commitments to purchase mortgages, conditioned upon the insurance of such mortgages by an agency or instrumentality of the United States of America, by Guam, or by any other person, firm, corporation or governmental entity approved by the Board of Directors of the Corporation.

Notwithstanding anything to the contrary herein, the Corporation is not authorized to make direct loans to any person, firm, corporation or governmental entity on residential real property, including single family dwellings, multiple family dwellings, condominiums and cooperative apartments.

(j) The Corporation is designated and authorized to be a development company as that term is defined in §662 of Title 15 of the United States Code.

(k) The Corporation shall act as a central financial manager and consultant for those agencies or instrumentalities of the Government requiring financial guidance and assistance. Such technical assistance by the Corporation shall include, but not be limited to, obtaining of funds through bond or other obligations, structuring such bond issuances, preparation and dissemination of financial and investment information, including bond prospectuses, development of interest among investment bankers
and bond brokers, maintenance of relationships with bond rating agencies and brokerage houses and, generally, acting as the centralized and exclusive financial planner and investment banker for all the agencies and instrumentalities of the Government to include, but not be limited to, such public corporations as the Guam Economic Development and Commerce Authority, the Jose D. Leon Guerrero Commercial Port of Guam, the Antonio B. Won Pat International Airport Authority, Guam, the Guam Power Authority, the Guam Memorial Hospital Authority, the University of Guam, the Guam Waterworks Authority and all other agencies or instrumentalities of the Government given the power, now or in the future, to issue and sell bonds or other obligations for the purpose of raising funds. Such agencies or instrumentalities of the Government shall issue bonds and other obligations only by means of and through the agency of the Corporation, and each such agency or instrumentality shall furnish the Corporation long- term estimates of financial needs so that the Corporation can coordinate a long-term plan for obtaining necessary funds for all such agencies and instrumentalities on a rational, non-competitive and efficient basis. The Corporation shall not issue or sell any bond without the approval of I Liheslatura of the terms and conditions of the bonds. For the purpose of this Subsection, the terms bond or other obligations do not include an instrument evidencing debt for a term of one (1) year or less. The provisions of this Section whereby the Corporation shall act as a central financial manager and consultant for those agencies requiring financial assistance shall not apply to those bonds or obligations which are sold by or to an agency of the Government of the United States, however, the provisions of this Section where I Liheslatura must approve the terms and conditions of the issuance of the bonds shall apply to said bonds or obligations. The provisions of this Subsection shall not apply to bonds or other obligations issued pursuant to Article V or Article VI of this Division on or before March 31, 1984, provided such bonds or other obligations are secured by a pledge of and lien upon the revenues and other funds or moneys derived from the projects or programs financed by the proceed of the sale of such bonds or other obligations and not by revenues and other funds or moneys derived from other projects or programs of the Corporation.
(l) The Corporation is authorized to make loans or to guarantee loans to non-profit cooperative associations licensed to do business in Guam in furtherance of the purposes and activities stated in this Act. All loans or guarantees so made shall be of such sum, value or so secured as to reasonably assure repayment or shall be of such vital need to the economy of Guam as to warrant additional risk or subsidies. As used in this subsection, non-profit cooperative association means any corporation organized under the provisions of 18 Guam Code Ann., Chapter 13.

(m) The Guam Economic Development Agency (GEDA) shall be responsible for actively promoting Guam as a location for the establishment of Export trading companies.

(n) The Authority shall promote and encourage the expansion and development of markets for the products of Guam.

(o) The Authority shall promote and encourage the location and development of new businesses on Guam, as well as the retention and expansion of existing businesses, with particular emphasis upon encouraging the tourist and the large-scale fisheries industries.

(p) An individual or business shall be ineligible for GEDA loans, leases, grants or other assistance if that individual or business, or any of its officers and/or directors, owners, partners, or shareholders that have more than five percent (5%) ownership interest in said business, including indirect ownership or other interest through proxy or trust, or sister parent or subsidiary ownership interest(s), personally or through a relative within one (1) degree of consanguinity, has:

(1) a record of delinquency that results in loan default on financial assistance obtained from GEDA or any other instrumentality of the government of Guam, unless borrower fully honored a work-out agreement to the satisfaction of the creditor;

(2) failed to meet and fulfill the terms and conditions of receiving GEDA assistance;

(3) a past due or unpaid civil judgment in the Superior
Court of Guam; or
(4) engaged in any activity that has resulted in conviction of a felony or a crime of moral turpitude in the Courts of Guam, the United States and its territories, or foreign jurisdiction. This Section shall not apply in the event that the prosecution is dismissed with prejudice.

SOURCE: GC § 53552; Subsection (a) amended by P.L. 11-033, 12-069 and 16-066; Subsection (d) amended by P.L. 11-033 and 12-069; Subsection (e) amended by P.L. 11-033; Subsection (g) amended by P.L.
11-033 and 12-069; Subsection (i) added by P.L. 11-033; Subsection (j)
added by P.L. 16-035; Subsection (k) added by P.L. 16-066 amended by
P.L. 17-037, 17-039, 17-074; Subsection (l) added by P.L. 16-125 as (u); Subsection (m) added by P.L. 17-067; Subsection (l) amended by P.L. 20-
097:1. Subsections (n), (o) and (p) added by P.L. 26-076:35; 36 and 37 (Mar. 12, 2002). The entire section 50103 was repealed and reenacted by
P.L. 27-110:12. Section 50103 as it existed prior to P.L. 27-110:12 was reenacted by P.L. 28-068:IV:71 (Sept. 30, 2005) which states:

P.L. 27-110:12 is hereby repealed and of no effect as of the date of its enactment, except as provided herein, and the acts of the Guam Economic Development and Commerce Authority between said enactment and the present are not affected by its enactment.

Subsection (p) repealed by P.L. 28-068:IV:53 (Sept. 30, 2005). Subsection (k) amended by P.L. 28-068:IV:71 (Sept. 30, 2005); P.L. 28-071:5 (effective Sept. 30, 2005). Subsection (a) amended by P.L. 29-113:VI:81 (Sept. 30, 2008). Subsection (p) added by P.L. 30-077:2 (Jan. 22, 2010). Subsection (p)(4) amended by P.L. 31-018:2 (Apr. 18, 2011). Subsection (f) amended by P.L. 34-057 (Oct. 14, 2017).

2022 NOTE: References to “”territory”” omitted and/or replaced with “”Guam”” pursuant to 1 Guam Code Ann. § 420. Reference corrected to “”Antonio B. Won Pat International Airport Authority, Guam”” pursuant to 12 Guam Code Ann. § 1102(b).